5 5. a Which of the following is correct about the retail inventory method? A physical count of inventory is compared to the computer count to make an approximation that is useful for interim reporting purposes b. Retail organizations, such as Target, do not need to keep track of the total cost and retail value of goods they purchase from suppliers. The retail inventory method means that employees who count inventory do not need to look up inventory items' costs, thereby saving time and expense d The cost-to-retail ratio is only necessary to calculate when goods on hand at the first of the accounting period have not been reduced to cost